In this guide, you’ll learn how to use the vePERP calculator on Dune Analytics to estimate the rewards you can earn by locking PERP into vePERP.
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Every week on Thursdays, 15% of the trading fees generated across Perp’s markets are directed to vePERP holders in USDC. A further amount equivalent to 10% of the weekly trading fees are distributed as locked PERP rewards. So far since the launch of Lazy River 2.0 in December 2022, vePERP holders have collectively earned around $240,000 in USDC and just over $154,000 worth of locked PERP.
If you want to start earning real yield, head over to our tokenomics page, then decide how many PERP tokens you want to lock and the lock time (up to 52 weeks). But before locking PERP, stakers may wonder ‘how much can I earn per week?’.
This is where the vePERP calculator comes in handy, which enables you to estimate the annual percentage return (APR) and annualized earnings for your vePERP position! Let’s dig in to see how you can use the calculator.
The first step to get started with the vePERP calculator is to create an account on Dune Analytics.
Register with an email address or use sign-in with Ethereum: https://dune.com/auth/register.
Once you’ve set up your account and password, sign into Dune with your new account and then go to this dashboard: https://dune.com/yenwen/veperp-calculator.
The total vePERP supply is shown here to help you make your decision. Let’s say you want to hold 0.1% of the vePERP supply. Since the total supply is around 11 million, then you’d need at least 11,000 vePERP.
With our veToken model, one PERP token locked for 52 weeks is equivalent to one vePERP. There are various combinations of locked PERP and lock times that can be used to get 11,000 vePERP. For example, you could lock 11,000 PERP for a maximum of 52 weeks, lock 22,000 PERP for 26 weeks, lock 44,000 PERP for 13 weeks, and so on.
To estimate your potential APR, the first step is to input the amount of tokens and the lock time in the fields highlighted below.
Assume we want to lock 10,000 PERP for a maximum lock time of 52 weeks. Then you’d enter 52 weeks in the “Current Lockup Duration Remaining Weeks” field and input 10,000 into the “Current PERP Locked Up” field (as shown below).
The next step is to then enter estimates for the weekly fee distribution in USDC and weekly locked PERP rewards.
The fees section shows the historical distributions of USDC and locked PERP for each week. One way to estimate the weekly distributions is to take an average of the past four weeks.
From the dashboard, the past four weeks distributed an average of about 24,800 USDC. Similarly, the average over the past four weeks for the locked PERP distribution is close to 23,700.
These averages can be inputted as estimates for the weekly distribution of USDC and locked PERP, as shown below:
Now we’re all set to calculate the upcoming week’s earnings from the staking position where 10,000 PERP is locked for 52 weeks. To get the estimates, scroll to the top of the dashboard and click on the “Apply All Parameters” button.
Let the queries run and once complete, the dashboard will be populated with new figures for your staking position. Here we can see that the current vePERP is equal to 10,000, so we know the query has finished running.
Head to the fees section to see the estimated APR for this vePERP position.
The relevant data points are the Current APR, Current Annualized Fees and Current APR (USDC only).
With our assumptions about the weekly USDC and locked PERP distributions, a staking position of 10,000 vePERP gives us an estimated APR of 23.32%. This APR figure includes both the USDC rewards earned from trading fees and the locked PERP incentives. Since the cost of 10,000 PERP is around $9,000 at the time of writing, the APR for USDC rewards would be around 12%, as displayed below.
The annualized fees you’d earn for a staking position of 10,000 vePERP is estimated to be $1,167. So if trading volumes remain constant over the next 12 months and the vePERP supply is fixed at around 11 million, you’d earn at least $1,167 over the course of one year.
Of course, if trading volumes increase significantly, this will improve your APR and the amount of annualized fees that you stand to earn. However, if more PERP is locked, then your share of the trading fee revenue will decrease (unless you lock more and/or extend your lock time as well in response).
You can play around with the figures inputted into the calculator to change the weekly fee distribution in case trading volume rises or falls. Teh same can be done with the vePERP position to see how a larger or smaller position (or a lock time with a lower duration) will impact your estimated earnings.
So far, you may have noticed we didn’t input anything into the projected fields. You can use this part of the dashboard if you want to increase your vePERP position and estimate how your potential earnings change.
Let’s say you have locked 10,000 PERP but only for 26 weeks. Using the calculator and our previous assumptions about the weekly USDC and locked PERP distributions, this results in an APR of 11.66% and an annualized USDC yield of $583.
But what if you want to lock an additional 10,000 PERP and extend the lock time from 26 weeks to 38 weeks? How much will that increase your earnings by?
To estimate your new earnings, enter 20,000 in the “New PERP Locked Up” field and input 38 in the “New Lockup Duration Weeks”, as shown below:
Then click on the “Apply All Parameters'' button at the top of the dashboard and wait for the queries to update. Once the calculator has finished processing the new inputs, you’ll then see your projected figure of 14,615 vePERP.
Then you can check the fees section to see your estimated APR for that week according to the estimates we’ve used for the USDC and locked PERP distributions. The statistics for your new staking position of 20,000 PERP locked for 38 weeks are shown by the projected APR, new annualized fees and projected APR (USDC only).
We can see from the image below that increasing the amount of locked PERP from 10,000 to 20,000 and increasing the lock time from 26 to 38 weeks results in an increased APR estimate, which rises from 11.66% to 17.02%.
By locking more PERP for longer, your annualized earnings paid in USDC in this example roughly triples from $583 to $1,703, while the USDC yield jumps from 6.08% to 8.88%!
The outputs provided by the vePERP calculator are largely dependent on your estimates of the weekly fee and locked PERP distributions, so the APR you realize and the USDC yield you actually earn may differ if the trading volume significantly varies from what you input in this dashboard. To see the latest trading volume stats for Perp, check out this dashboard.
Nevertheless, the vePERP calculator is a useful tool that helps you decide how much PERP to lock and for how long to achieve your desired results. It’s also helpful in illustrating how increasing your stake or lock time will affect your estimated APR and annualized USDC yield.
Start earning real yield in USDC by locking PERP into vePERP here!